Counterfeiting Consequences
The counterfeit industry is Much Bigger competition
than legitimate competitors…
While the illicit trafficking of counterfeit goods is often perceived as a “lesser crime”, the consequences can be quite serious, with the costs going far beyond just the illegal copying of products.
Brand Owners/Manufacturers
- Higher purchase costs due to additional costs related to security and tracing systems, litigation, and civil enforcement
- Detrimental economic impact
- Damage to brand reputation
Consumers/End Users/Society
- Threat to Public Health and Safety
- Negative environmental impact
- Labor exploitation
- Offers criminals a complementary source of income and a way through which they can launder money
- Criminals use profits from the sale of counterfeit goods to further other illicit operations
Governments/Revenue Agencies
- Higher medial and social security costs
- Lost tax and customs duties revenues